Earned Income Tax Credit (EITC)
- Refundable: 28% of federal EITC
- Non-Refundable: 50% of federal EITC1
Eligibility Requirements: See Maryland’s EITC information page
Latest Legislative Action: In May 2018, Maryland passed legislation to eliminate the minimum age requirement for the state-level EITC.
- The non-refundable credit is equal to the lesser of 50% of the federal credit or the state income tax liability in the taxable year. If the nonrefundable credit reduces a taxpayer’s liability to zero, the taxpayer is eligible to claim a refundable credit equal to 26% of the federal credit in tax year 2016, minus any pre-credit state tax liability.3
- Montgomery County, a large suburban county neighboring the District of Columbia, is one of three counties in the United States to offer a local EITC in addition to the state credit. Eligible families that filed for the EITC receive a county credit equal to 100% of the state’s refundable credit.4
Child Tax Credit (CTC)
State CTC: The state of Maryland does not currently offer a state level Child Tax Credit.
Child and Dependent Care Tax Credit (CDCTC)
State CDCTC Rates (Refundable for single filers with incomes below $50,000, married filers with incomes below $75,000):
|Percentage of Federal Credit||Individuals||Married Filing Jointly|
|35%||Up to $50,000||Up to $75,000|
|0%||Over $110,000||Over $141,000|
Latest Legislative Action: In May 2019, Governor Larry Hogan (R) signed legislation to significantly increase the size of the state’s Credit for Child and Dependent Care Expenses, expand the income limits, and make the credit refundable for single filers with incomes below $50,000 and married filers with incomes below $75,000.
Read the bill’s Fiscal and Policy Note page for more details.
Eligibility Requirements: See Maryland CDCTC information page.